How to get ready for Making Tax Digital

1. Check whether you need to join

Add up your self-employment turnover and rental income on your 2025⁠–⁠26 tax return, before expenses. Over £30,000 means you start on 6 April 2027. HMRC writes to people it expects to join, but don't wait for a letter: the rules apply either way. Our guide Does Making Tax Digital apply to me? explains what counts and who is exempt.

2. Choose your software

You need software that works with Making Tax Digital for Income Tax. HMRC lists them on GOV.UK, and some are free. When you compare them, check that the software:

• covers all your income sources: self-employment, UK property, overseas property
• can read your bank accounts, or import statements, so you don't type every transaction
• sends quarterly updates and your tax return, not just one of them
• handles anything particular to you, such as CIS, jointly owned property or more than one trade
• lets your accountant see your records, if you have one

If you already keep records in a spreadsheet, you can carry on and use bridging software to send the updates. You'll still need to keep the spreadsheet up to date every quarter.

3. Sign up

Signing up is free, on GOV.UK. You'll need your HMRC sign-in details, your National Insurance number, and the start date of any business or letting that began in the last two tax years. You choose the tax year you're starting from. If you have an accountant, they can sign you up instead.

You can sign up early, before April 2027, to get used to it.

4. Get your records in order

• Separate business from personal. A separate bank account for your business or lettings isn't required, but it makes everything quicker.
• Gather your income sources. Each trade, your UK property and any overseas property each need their own records and updates.
• Keep receipts digitally. A photo is enough. You need to keep records for at least 5 years after the 31 January deadline for the tax year.
• Decide on your quarters. Standard quarters end on the 5th (5 July, 5 October and so on). Calendar quarters end on the last day of June, September, December and March. Choose in your software before your first update.

5. Don't forget your last old-style return

Starting Making Tax Digital in April 2027 doesn't change your 2026⁠–⁠27 tax return. You send that the usual way, by 31 January 2028.

6. Send your first update

Your first update covers 6 April to 5 July 2027 and is due by 7 August 2027. You can send it as soon as the quarter ends. After that, updates are due on 7 November, 7 February and 7 May, then your tax return by 31 January 2029. The full list is in quarterly updates and deadlines.

A checklist